The World Gold Council has just published the latest issue of “Gold Demand Trends” (Third quarter 2011). This is a rather bullish report, highlighting a surge in central bank purchases – more than doubling from the second quarter and increasing by 556% from a year ago!
The report said: “Activity among central banks continued to fulfil our expectations of further purchases in Q3. In fact, net buying accelerated notably during the quarter – totaling 148.4 metric tons – as the issues surrounding the creditworthiness of western governments’ debt seeped into the official sector. A number of banks continued their well-publicised programs of buying, while a slew of new entrants emerged wishing to bolster their gold holdings in order to diversify their reserves. We see this trend continuing into 2012.”
This reports is very positive for the gold price and should limit the downside risk of corrections.
Click here to download the full report.
[pdf http://worldgoldcouncil.newsweaver.co.uk/images/5861/10802/1883495/WOR6562%20GDT%20Q3%202011.pdf 500 670]Source: World Gold Council, November 17, 2011.
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